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Subject: Bilateral Relations

1. Major World Events
2. India’s Interests in neighbourhood
3. Effects of our Policies

  • Need for West Asia’s diplomatic resets

    The article highlights the unprecedented engagement among the countries of West Asia even among the rivals and explains its significance.

    New diplomatic engagements in West Asia

    • Recently, there have been interactions between senior Saudi and Iranian officials, the first since diplomatic ties were broken in January 2016.
    • Following the removal of the diplomatic and economic blockade on Qatar that was imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, Doha has made efforts to mend ties with both Saudi Arabia and Egypt, in tandem with similar initiatives of its doctrinal and political ally, Turkey.
    • On May 5, Turkey and Egypt had their first diplomatic meeting in Cairo after they had broken diplomatic ties in 2013.
    • The two countries, on opposite sides on almost all regional issues, are now exploring how to address their differences.

    Driving force behind these engagements

    • The driving force behind these unprecedented engagements is the advent of the Biden administration at the helm of politics in the United States.
    • He has taken a tough line on Saudi Arabia, scrutinising its human rights record and opposition to the war in Yemen.
    • Besides concerns in West Asian capitals, the broader message is that the U.S. is now likely to be less engaged with the region’s quarrels.
    • These signals of new U.S. policies have occurred even as the novel coronavirus pandemic is devastating West Asia.
    • Finally, one major factor is the recognition that the ongoing regional conflicts, in Syria, Yemen and Libya, despite the massive death and destruction, have yielded no military outcome and now demand fresh diplomatic approaches.

    Long way to go in resolving differences

    • Egypt remains uneasy about Turkey’s ties with the Brotherhood and its regional ambitions.
    • Saudi Arabia has similar concerns about Turkey’s doctrinal affiliations and its relations with Iran.
    • There are difficulties in reshaping Saudi-Iran relations as well.
    • Iran may ease the pressure on the kingdom in Yemen and gradually yield ground in Iraq.
    • However, Syria will test their diplomatic skills as they explore how to accommodate their competing strategic interests in that devastated country.

    Historic period for West Asian diplomacy

    • This is truly a historic period for West Asian diplomacy.
    • The major states are displaying unprecedented self-confidence in pursuing initiatives without the involvement of western powers that have dominated regional affairs for at least a couple of centuries.
    • This has left a pervasive sense of insecurity across West Asia and made the countries dependent on western alliances to ensure their interests.
    • This has left a pervasive sense of insecurity across West Asia and made the countries dependent on western alliances to ensure their interests.

    Role for India

    • Given that regional contentions are inter-connected, third-party facilitators will be needed to promote mutual confidence and prepare the ground for a comprehensive regional security arrangement.
    • This will bring together regional and external states with a stake in West Asia security.
    • This arrangement will have provisions for participating states to uphold regional peace and promote mutually beneficial cooperation in energy, economic and logistical connectivity areas.
    • Given its close ties with all the regional states, India is well-placed to build an association of like-minded states — Japan, Russia, South Korea — to shape and pursue such an initiative for West Asian peace.

    Conclusion

    These new diplomatic engagements with erstwhile rivals could in time overturn existing regional alignments and possibly end ongoing conflicts.

  • Farzad B Gas Field

    Iran gave the Farzad B gas field to a domestic gas producer in a setback move to India.

    Farzad B Gas Field

    • Farzad-B is an off-shore natural gas field 20 kilometres off Farsi Island in Iran.
    • The gas field was discovered in 2008 by a consortium of three Indian companies, led by the state-owned ONGC Videsh with a 40% stake; the other companies were Indian Oil Corporation (40%) and Oil India (20%).

    Deal soured after US sanctions

    • Negotiations between the consortium and the National Iranian Oil Company (NIOC) to develop the gas field stalled due to secondary sanctions against Iran by the US and the European Union in the early 2010s.
    • Following the lifting of sanctions after the Joint Comprehensive Plan of Action was signed in July 2015 the consortium was close to an agreement to invest $US5 billion to develop the gas field.
    • After the United States withdrawal from the JCPOA in May 2018, and the reinstatement of U.S. sanctions against Iran, the negotiations between the consortium and NIOC broke down.

    Consider the question “Balancing the contrasts has been the basis of India’s relations with Iran. Comment.”

  • Cabinet clears MoU between ICAI and Qatar Financial Centre Authority

    Signing of MoU

    • The Union Cabinet approved the signing of a pact between the Institute of Chartered Accountants of India (ICAI) and the Qatar Financial Centre Authority (QFCA)
    • The ICAI has more than 6,000 members in the Middle East.

    Increase opportunities and enhance cooperation

    • The MoU would enhance cooperation between the institutes to work together to strengthen the accounting profession and entrepreneurship base in Qatar.
    • The MoU would provide the ICAI members in the entire Middle East better recognition, together with working to support Indian businesses desirous of doing business in Qatar
    • The MoU will endeavour to increase opportunities for ICAI members to provide professional services in Qatar in the areas of assurance and auditing, advisory, taxation, financial services and allied areas.
  • [pib] Goa Maritime Symposium (GMS) – 2021

    Fostering relations with maritime neighbours

    • Towards fostering friendly relations with its maritime neighbours, Indian Navy hosted ‘GMS-21’.
    • The event for the first time was hosted in virtual mode, with online participation of Naval representatives from 13 Indian Ocean Littoral countries.
    • The 13 countries included India, Bangladesh, Comoros, Indonesia, Madagascar, Malaysia, Maldives, Mauritius, Myanmar, Seychelles, Singapore, Sri Lanka and Thailand.
    • The theme for GMS-21 was focused on “Maritime Security and Emerging Non-Traditional Threats: A Case for Proactive Role for IOR Navies,” with emphasis on capacity building amongst the IOR Navies to tackle emerging common maritime threats.

    Bringing together the stakeholders

    • With the Indian Ocean becoming the locus of 21st century strategic landscape, the symposium will play a constructive role in bringing together the stakeholders who have a role in evolving strategies, policies and implementation mechanisms on the issues of common interest in maritime domain.
    • In addition to presenting cooperative strategies for enhancing interoperability among partner maritime agencies, the event provided a forum for articulation of views on the crucial maritime issues, followed by theme based discussions.
  • Evaluate the Ladakh crisis

    The article highlights the need for a critical assessment of the stand-off with China last year and offers key lessons in managing the strategic competition with China.

    Year after stand-off

    • After over a year, the stand-off between Indian and Chinese troops in eastern Ladakh shows no signs of resolution.
    • More broadly, the India-China bilateral relationship has ruptured.
    • Reversing a long-held policy, India will no longer overlook the problematic border dispute for the sake of a potentially lucrative wider relationship.
    • Even if disengagement continues, the relationship will remain vulnerable to destabilising disruptions.
    • Therefore, the Ladakh crisis offers India three key lessons in managing the intensifying strategic competition with China.

    Three key lessons

    1) Military strategy based on denial are more useful

    •  Military strategies based on denial are more useful than strategies based on punishment.
    •  The Indian military’s standing doctrine calls for deterring adversaries with the threat of massive punitive retaliation for any aggression, capturing enemy territory as bargaining leverage in post-war talks.
    • But this did not deter China from launching unprecedented incursions in May 2020.
    • In contrast, the Indian military’s high-water mark in the crisis was an act of denial — its occupation of the heights on the Kailash Range on its side of the LAC in late August.
    • This action served to deny that key terrain to the Chinese People’s Liberation Army (PLA), and gave the Indian Army a stronger defensive position.
    • A doctrinal focus on denial will give the Indian military greater capacity to thwart future land grabs across the LAC.
    • Over time, improved denial capabilities may allow India to reduce the resource drain of the increased militarisation of the LAC.

    2) Political cost matters more

    • China is more likely to be deterred or coerced with the threat of political costs, rather than material costs.
    • The material burden of the crisis would not disrupt its existing priorities.
    • In contrast, India successfully raised the risks of the crisis for China through its threat of a political rupture, not military punishment.
    • A permanently hostile India or an accidental escalation to conflict were risks that China, having achieved its tactical goals in the crisis, assessed were an unnecessary additional burden.
    • The corollary lesson is that individual powers, even large powers such as India, will probably struggle to shift Beijing’s calculus alone.
    • Against the rising behemoth, only coordinated or collective action is likely to be effective.

    3) India should accept more risk on LAC

    • India should consider accepting more risk on the LAC in exchange for long-term leverage and influence in the Indian Ocean Region.
    • From the perspective of long-term strategic competition, the future of the Indian Ocean Region is more consequential and more uncertain than the Himalayan frontier.
    • At the land border, the difficult terrain and more even balance of military force means that each side could only eke out minor, strategically modest gains at best.
    • In contrast, India has traditionally been the dominant power in the Indian Ocean Region and stands to cede significant political influence and security if it fails to answer the rapid expansion of Chinese military power.

    Conclusion

    As these three lessons show, the future of the strategic competition is not yet written. If India’s leaders honestly and critically evaluate the crisis, it may yet help to actually brace India’s long-term position against China.

  • India and EU relaunch FTA talks, sign connectivity partnership

    Resumption of FTA

    • Prime Minister of India interacted virtually from Delhi with EU chiefs.
    • India and the European Union agreed to relaunch free trade negotiations by resuming talks that were suspended in 2013 for the Bilateral Trade and Investment Agreement (BTIA).
    • The talks had run into trouble over market access issues, and tariffs by India on products like wine, dairy and automotive parts, as well as EU resistance over visas for Indian professionals.
    • In addition, Indian government’s decision to scrap all Bilateral Investment Treaties (BITs) in 2015 posed hurdles for new EU investments in India.

    Connectivity Partnership document

    • The EU-India leaders adopted a Connectivity Partnership document.
    • The India-EU connectivity partnership committed the two sides to working together on digital, energy, transport, people to people connectivity.
    • The partnership is seen as a response to China’s Belt and Road Initiative, and comes as the EU’s negotiations with China on their Comprehensive Agreement on Investment (CAI) have run into trouble.
    • The contract for the second tranche of $150 million from the EU for the Pune Metro rail project was also signed.

    No EU support for Covid-19 vaccine waiver

    • India failed to secure the support of the European leaders for patent waivers for Covid vaccine.
    • The support of a major bloc like the EU is crucial to passing the resolution at the WTO by consensus.
  • [pib] India-UK virtual summit strengthens STI cooperation

    Enhance partnership in science, education, research and innovation

    • The Prime Minister of India and the UK  met virtually on 4 May 2021 and emphasised their shared commitment to an enhanced partnership in science, education, research and innovation.
    • In keeping with this commitment, both the leaders welcomed the following:
    • The new MoU on Telecommunications/ICT and the Joint Declaration of Intent on Digital and Technology.
    • There was also the establishment of new high-level dialogues on tech.
    • A new joint rapid research investment into Covid19.
    • A new partnership to support zoonotic research,
    • New investment to advance understanding of weather and climate science.
    • There will be continuation of the UK-India Education and Research Initiative (UKIERI).

    Key points to strengthen STI cooperation

    • Enhance cooperation between India and the UK on strengthening the role of women in STEM at schools, universities, and research institutions through initiatives like Gender Advancement for Transforming Institutions (GATI) project.
    • Develop collaborations between Industry, Academia and the Government to foster innovation among school students by focusing on teacher training, mentoring and sharing of global best practices through initiatives like the India Innovation Competency Enhancement Program (IICEP)
    • Build on the two countries’ existing bilateral research, science and innovation infrastructure and governmental relationships to continue to support high-quality, high-impact research and innovation through joint processes.
    • Forge partnership across the pipeline of research and innovation activity, from basic research to applied and interdisciplinary research.
    • Leverage and build on existing, long-standing bilateral partnerships such as on education, research and innovation, to stimulate a joint pipeline of talent, excellent researchers and early-career innovators.
    • Work together to share knowledge and expertise regarding artificial intelligence, scientific support to policies and regulatory aspects including ethics, and promote a dialogue in research and innovation.
    • Through Tech Summits, bring together tech innovators, scientists, entrepreneurs and policy makers to work together on challenges including the norms and governance of future tech under the cross-cutting theme of ‘data’.
    •  Grow programmes such as the Fast Track Start-Up Fund to nurture innovation-led, sustainable growth and jobs, and tech solutions that benefit both countries.
  • How Covid would impact India’s foreign policy canvass

    Foreign policy consequences

    • The devastation caused by the second Covid wave prompted India to accept foreign aid after a gap of 17 years.
    • This is bound to have far-reaching strategic implications for India.
    • As a direct consequence of the pandemic, India’s claim to regional primacy and leadership will take a major hit.
    • India ‘leading power’ aspirations will be dented, and accentuate its domestic political contestations.
    • These in turn will impact the content and conduct of India’s foreign policy in the years to come.

    What would be the strategic implications?

    1) Impact on India’s regional primacy

    • COVID 2.0 has quickened the demise of India’s regional primacy.
    • India’s geopolitical decline is likely to begin in the neighbourhood itself.
    • India’s traditional primacy in the region was built on a mix of material aid, political influence and historical ties.
    • Its political influence is steadily declining, its ability to materially help the neighbourhood will shrink in the wake of COVID-19.
    • Its historical ties alone may not do wonders to hold on to a region hungry for development assistance and political autonomy.

    2) Impact on India’s great power aspiration

    •  India aspires to be a leading power, rather than just a balancing power.
    • While the Indo-Pacific is geopolitically keen and ready to engage with India, the pandemic could adversely impact India’s ability and desire to contribute to the Indo-Pacific and the Quad.
    • COVID-19, for instance, will prevent any ambitious military spending or modernisation plans.
    • Covid-19 will also limit the country’s attention on global diplomacy and regional geopolitics, be it Afghanistan or Sri Lanka or the Indo-Pacific.
    • With reduced military spending and lesser diplomatic attention to regional geopolitics, New Delhi’s ability to project power and contribute to the growth of the Quad will be uncertain.

    3) Domestic political contestation  and its impact on strategic ambition

    • Domestic political contestations in the wake of the COVID-19 devastation in the country could also limit India’s strategic ambitions.
    • General economic distress, a fall in foreign direct investment and industrial production, and a rise in unemployment have already lowered the mood in the country.
    • A depressed economy, politically volatile domestic space combined with a lack of elite consensus on strategic matters would hardly inspire confidence in the international system about India.

    4) Impact on India-China equation

    • From competing with China’s vaccine diplomacy a few months ago, New Delhi today is forced to seek help from the international community.
    • China has, compared to most other countries, emerged stronger in the wake of the pandemic.
    • The world, notwithstanding its anti-China rhetoric, will continue to do business with Beijing — it already has been, and it will only increase.
    • Claims that India could compete with China as a global investment and manufacturing destination would be dented.
    • India’s ability to stand up to China stands vastly diminished today: in material power, in terms of balance of power considerations, and political will.

    5) Depressed foreign policy

    • Given the much reduced political capital within the government to pursue ambitious foreign policy goals, the diplomatic bandwidth for expansive foreign policy goals would be limited.
    • This, however, might take the aggressive edge off of India’s foreign policy.
    • Less aggression could potentially translate into more accommodation, reconciliation and cooperation especially in the neighbourhood, with Pakistan on the one hand and within the broader South Asian Association for Regional Cooperation (SAARC) framework on the other.
    •  COVID-19 has forced us to reimagine, to some extent at least, the friend enemy equations in global geopolitics.
    • While the United States seemed hesitant, at least initially, Russia was quick to come to India’s aid. 

    6) Implications for strategic autonomy

    • The pandemic would, at the very least indirectly, impact India’s policy of maintaining strategic autonomy.
    • As pointed out above, the strategic consequences of the pandemic are bound to shape and structure India’s foreign policy choices as well as constrain India’s foreign policy agency.
    • It could, for instance, become more susceptible to external criticism for, after all, India cannot say ‘yes’ to just aid and ‘no’ to criticism.

    Consider the question “Examine the strategic implications of Covid for India.” 

    Way forward

    • COVID-19 will also do is open up new regional opportunities for cooperation especially under the ambit of SAARC.
    • India might do well to get the region’s collective focus on ‘regional health multilateralism’ to promote mutual assistance and joint action on health emergencies such as this.
    • Classical geopolitics should be brought on a par with health diplomacy, environmental concerns and regional connectivity in South Asia.

    Conclusion

    While the outpouring of global aid to India shows that the world realises India is too important to fail, the international community might also reach the conclusion that post-COVID-19 India is too fragile to lead and be a ‘leading power’.

  • [pib] Cabinet approval to MoU between India and UK on Global Innovation Partnership

    Cabinet approval to GIP

    • The Union Cabinet gave ex-post facto approval to the signing of Memorandum of Understanding (MoU) India and Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom on Global Innovation Partnership (GIP).
    • GIP will support Indian innovators to scale up their innovations in third countries thereby helping them explore new markets and become self-sustainable.

    How GIP will help India

    • It will also foster an innovative ecosystem in India.
    • GIP innovations will focus on Sustainable Development Goals (SDG) related sectors thereby assisting recipient countries achieve their SDGs.
    • Through seed funding, grants, investments and technical assistance, the Partnership will support Indian entrepreneurs and innovators to test, scale-up and take their innovative development solutions to select developing countries.
    • GIP will also develop an open and inclusive e-marketplace (E-BAAZAR) for cross-border innovation transfer and will focus on results-based impact assessment thereby promoting transparency and accountability.
  • Article 21 and the right of non-refoulement

    Significance of Manipur High Court judgement

    • The High Court of Manipur on Monday allowed seven Myanmar nationals, to travel to New Delhi to seek protection from the United Nations High Commissioner for Refugees (UNHCR).
    • “The far-reaching and myriad protection afforded by Article 21 of our Constitution, as interpreted and adumbrated by our Supreme Court time and again, would indubitably encompass the right of non-refoulement,” the court said.

    What is the principle of non-refoulemennt

    • Non-refoulement is the principle under international law that a person fleeing from persecution from his own country should not be forced to return.
    • Though India is not a party to the UN Refugee Conventions, the court observed that the country is a party to the Universal Declaration of Human Rights of 1948 and the International Covenant on Civil and Political Rights of 1966.